Michigan law permits several types of agency relationships in real estate transactions. Which of the following is NOT a recognized agency relationship type under Michigan's real estate licensing framework?
Correct Answer
C) Neutral agency, where the licensee represents neither party and charges a flat facilitation fee
'Neutral agency' is not a recognized agency relationship type under Michigan's real estate licensing framework. Michigan law recognizes seller agency, buyer agency, dual agency (with informed written consent), and designated agency. A licensee who charges a flat facilitation fee and represents neither party would still need to operate within a recognized framework and disclose their role clearly; 'neutral agency' as a formal category does not exist under the Michigan Occupational Code.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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